“Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.,” Walmart chief executive Doug McMillon said in a statement Thursday. | Gareth Patterson/AP Photo

Walmart boosts starting wages to $11 an hour, citing tax reform

Walmart said Thursday it would raise the starting wage for hourly associates, expand parental leave benefits and offer a one-time cash bonus for eligible associates, crediting the GOP tax overhaul and drawing praise from Republicans.

“We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders,” Walmart chief executive Doug McMillon said in a statement. “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S."

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Walmart joins a list of companies, including AT&T, Comcast and American Airlines, that have announced bonuses and wage hikes following the passage of Republicans’ tax plan. Walmart is also following Target, which boosted its starting wage last fall.

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"After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy," Sam's Club said in a response to a follower on Twitter. "Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition." In some cases, employees were not notified of their store's closure until they arrived to work, reports suggest.

Walmart will boost starting wages for hourly associates to $11, beginning with the Feb. 17 pay cycle. Full- and part-time hourly associates in the U.S. will be eligible for a one-time bonus, determined by how long they’ve been with the company. Associates with 20 or more years under their belt could qualify for up to $1,000.

Walmart will also expand its parental and maternity leave policy, allowing full-time hourly associates 10 weeks of paid maternity leave and six weeks of paid parental leave. Walmart will also offer financial assistance to associates who are adopting a child, the company said.